Senate Majority Leader Ruiz Works on Legislation that Would Enhance Membership on SHBP – SEHBP Commissions

Trenton – Senate Majority Leader M. Teresa Ruiz continues to call for action in response to a suddenly revealed plan that will result in double-digit rate increases in health benefits for public employees ahead of a meeting of the plan design committees for the State Health Benefits Program (SHBP) and the School Employees Health Benefits Program (SEHBP). As part of her ongoing efforts, Majority Leader Ruiz is drafting legislation aimed at enhancing the conversation around rising health care costs, by ensuring that the voices more members are heard during discussions about rate increases that will impact them financially.

The legislation is but another component of the overall effort undertaken by Majority Leader Ruiz and members of Senate Leadership to combat the drastic increases in health plan premiums facing the SHBP and SEHBP. Senate Leadership has been proactively engaging in conversations with the Department of the Treasury and advocating for measures to mitigate the financial impact of any rate changes. A follow-up letter seeking further information and urging appropriate action from those with decision-making authority was also sent to the Treasurer last week.

“This bill seeks to create fairer and more comprehensive conversations about healthcare costs by giving local governments, colleges, and school business administrators much needed representation when such impactful decisions are being made,” said Majority Leader Ruiz (D-Essex). “By providing these additional points of view, we can ensure that all potential concerns are addressed and develop more robust solutions for managing rising costs. At a time when residents are already feeling the worst effects on inflation and high prices in their daily lives, we should look to do everything in our power to mitigate this issue and avoid saddling our public employees, educators, and taxpayers with additional financial burdens.”

The bill would add a representative from a municipality, a county, county colleges, and a member representing school business administrators to their respective commissions. The bill would maintain the current balance of representation between employees and employers, and all members added under the bill would be appointed by the Governor, as current members are.

“This legislation will finally give the community colleges a voice in making critical decisions impacting the health insurance we provide to over 5,500 employees in the state,” said Dr. Aaron Fichtner, president of the New Jersey Council of County Colleges. “We thank Majority Leader Ruiz for recognizing this long-standing oversight and for taking action to correct it.”

“With the ominous prospect of facing unsustainable increases in healthcare costs of up to 24% in 2023, the New Jersey Association of Counties (NJAC) commends Senate Majority Leader Ruiz for her leadership in introducing legislation that will provide local governments and property taxpayers with long overdue representation in determining health benefit plan designs and costs for public employees under the State Health Benefits Program (SHBP),” said John G. Donnadio, Executive Director of the New Jersey Association of Counties.

“The recent news of a possible and unsustainable health care costs increase to employees and employers underscores and demonstrates the need for the voice of local governments, and their property taxpayers, to be at the table. We would like to express our appreciation to Senator Ruiz for her leadership, and urge quick passage of this legislation when the Legislature reconvenes,” said Michael F. Cerra, Executive Director of the NJ State League of Municipalities.

Majority Leader Ruiz commends Treasury for delaying the vote that was expected this week and continues calls to avoid any hasty decisions that will increase costs and prove harmful to families across New Jersey who are already struggling to survive in difficult economic times. She will continue to engage on this issue as she seeks to prevent these exorbitant increases from being approved.